DTN Closing Livestock Comments

Meat Futures Relaunch Buying Spree Into Last Third of October

(DTN file photo)

GENERAL COMMENTS:

The cash cattle arena was typically slow for a Monday with the distribution of new showlists the major order of the day. The new fed offering is larger in Texas and Kansas, about steady in Colorado and some smaller in Nebraska. According to the midday report, the national hog base is $0.59 lower compared with the Prior Day settlement ($51-$58.90, weighted average $58.09). Corn futures closed several cents higher thanks to drier weather and more constructive harvest conditions. The Dow closed 127 lower with the Nasdaq up 19.

LIVE CATTLE:

Live issues should be well supported by ideas of firming cash sales. Triple-digit gains should be sponsored by ideas of recovering feedlot sales as we move toward the middle of the fourth quarter. Beef cut-outs closed significantly higher with the choice up $135.00 ($209.28) and the select up $3.42 ($197.66). Box demand was called light to moderate with light to moderate offerings.

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TUESDAY'S CASH CATTLE CALL:

Steady-$2 higher. Bids and asking prices should remain poorly defined on Tuesday.

FEEDER CATTLE:

Feeder futures advanced with the help of spillover buying from the live market. CME cash feeder index: 10/18: $155.27, off $0.09.

LEAN HOGS:

Lean issues benefited from short-covering and signs of oversold technical considerations. The carcass value held about steady with loins and hams overshadowing the other major primals. Pork cut-out: $78.42, off $0.03. CME cash lean index for 10/18: $67.22, off $0.54 (DTN Projected lean index for 10/19: $66.43, off $0.79).

TUESDAY'S CASH HOG CALL:

Steady to $2 lower. Look for opening bids to begin on the defensive as ready barrows and gilts remain plentiful.

John Harrington can be reached at harringtonsfotm@gmail.com

(BE)

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